Maryland lawmakers advanced legislation targeting sweepstakes casinos, with both bills passing the House.
House Bill 295 passed March 20 with a 105-25 vote, while House Bill 1226 passed March 23, 134-2. Both now head to the Senate Budget and Taxation Committee.
Key Takeaways
- Maryland's House passed HB 295, creating criminal penalties for sweepstakes-style “interactive games” offering cash or equivalent rewards.
- A second bill, HB 1226, advanced its final reading and would allow expanded enforcement tools against illegal online gambling.
- Both bills have been referred to the Senate Budget and Taxation Committee.
HB 295 introduces a new criminal prohibition on “interactive games,” defined as online or mobile platforms that use multiple currencies to exchange for prizes or cash equivalents while simulating casino-style gaming, lottery products, or sports betting. The bill excludes games offering only non-cash prizes.
The measure targets operators, promoters, and others involved in such platforms. Violations carry fines of $10,000 to $100,000 and prison terms of up to three years.
The bill also followed a delayed legislative path after its Feb. 5 hearing before the Ways and Means Committee. After more than a month without movement, lawmakers advanced HB 295 on March 19 with amendments to enforcement provisions. During the floor debate, questions arose about whether free-to-play users would be affected.
HB 1226, a related enforcement bill, also progressed after its third reading. This would give regulators greater authority to issue stop orders, deny payments and access, and impose civil and criminal penalties on illegal operations and service providers.
Maryland lawmakers now have until the end of the current legislative session to pass either bill. If passed, Maryland would join the likes of Indiana and six other states in banning sweepstakes casinos.
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Maryland online casinos face legislative setback
As legislation against sweepstakes casinos advanced, legislation for potential Maryland online casinos has been set back. Two Senate bills aimed at establishing an iGaming framework failed to advance before the General Assembly's Crossover Day deadline.
The primary measure, SB 761, would have placed a referendum on the ballot, allowing voters to decide whether to legalize online casino gaming. Its companion bill, SB 885, outlined operational rules but depended on voter approval. Sen. Ron Watson withdrew the referendum bill on March 13, leaving the framework legislation without effect.
On the House side, similar proposals were reviewed earlier in March, but lawmakers indicated limited support. Delegate Wayne Hartman said there was little appetite to pass iGaming legislation during an election year, noting lawmakers have avoided controversial measures, including tax increases, amid budget concerns. The bill has also faced pushback from the casino industry and other local leaders.
State analysis projected Maryland online casinos could generate $1.3 billion in revenue over six years, potentially helping address a $1.5-billion budget shortfall. The proposals would have allowed the state's six licensed casinos to operate digital gaming platforms or partner with existing operators such as DraftKings and FanDuel.
With Crossover Day passed, bills that failed to advance are unlikely to move forward this session, although they technically remain active until April 13.
