Maryland lawmakers are set to approve legislation that bans sweepstakes-style casinos in the state. They remain far from passing a proposal that would legalize real-money games.
- Maryland lawmakers are poised to pass a sweepstakes casino ban with strong bipartisan support, reflecting a broader national trend.
- A separate iGaming legalization effort has stalled, with lawmakers reluctant to regulate real-money online casino play.
- Industry divisions and concerns over unregulated markets continue to block progress on a taxed, regulated online gaming framework.
As Maryland’s sweeps ban bill is racing toward passage, a separate bill that would tax and regulate many of the games offered by sweeps sites has gained little traction. The dichotomy underscores the growing political support in Maryland - and an increasing number of states - for banning sweeps games while preserving the prohibition on real-money versions.
Sweeps bans accelerate
Maryland is among more than a half-dozen states that have introduced dual-currency online casino ban bills this year. It is set to join California, New York, New Jersey, and a growing number of states that have already passed bans.
Many leading operators have already existed at least a dozen states due to prior or recently passed laws, a figure that is set to grow when a bill passed this year by Indiana (and possibly more states) takes effect.
Maryland’s companion anti-sweeps bills passed the House of Delegates 105-25 and the state Senate 135-1 earlier this month. Now crossed over to their new chambers, the respective bills will be heard in committee within the next few days and are expected to pass the full legislature with similar bipartisan support in the coming weeks.
Maryland lawmakers discussed, but didn't vote on, an online sweeps casino ban bill this afternoon; opponents of the bill representing the sweeps industry argued their business model was akin to McDonald's Monopoly sweepstake promotion, a claim pushed back on by several lawmakers
— Ryan Butler (@ButlerBets) January 28, 2026
Proponents, including the state’s gaming regulators, have framed online sweeps casinos as violators of Maryland gambling law. Ban advocates say the sites’ dual-currency system, which allows some users to pay for a type of coin that can be exchanged for prizes, is a way to circumvent existing gambling prohibitions.
Multiple sweeps operators in testimony in Maryland and other statehouses have said these games comply with existing law while offering consumer protections. They’ve argued their products are more akin to the Monopoly promotion at McDonald’s restaurants and serve as a complement to existing gameplay.
Lawmakers have almost unilaterally sided against the sweeps operators. At least a dozen states could see sweeps bans by year’s end.
No state has introduced legislation that would explicitly allow them.
Online gaming flounders
Meanwhile, proponents of regulated online casino gaming have seen similar resistance.
Maryland Sen. Ron Watson pulled his iGaming legalization bill from consideration earlier this month, a political move that likely ends any passage chances this calendar year. Though Maryland legislators have floated bills to tax and regulate online slots and table games in recent years, few proposals have gained momentum.
Lawmakers from both parties have lined up to oppose online sweeps casinos partially because they fear they act as an unregulated digital casino. But few have been politically willing to regulate and tax those offerings, much to the frustration of the gaming industry.
The proliferation of hundreds of sweeps-style casino platforms that have generated billions of dollars in nationwide revenue underscore players’ interest in these games, said John Pappas, state advocacy director for the iDevelopment and Economic Association. While supporting bans on unlicensed sweeps casinos, Pappas has argued legislators need to also create a regulated environment for players who wish to play casino games online.
“Additional prohibitions might feel like a step forward for politicians, but they do very little for Maryland consumers,” Pappas told Covers. “In the absence of legal and regulated online gaming alternatives, a black market will continue to thrive because demand is not going away.”
Divisions stall iGaming
Unlike online sports betting, which is legal in Maryland and 30 other states, digital casino gaming has divided gaming stakeholders.
Larger digital-focused gaming companies such as FanDuel and DraftKings, as well as major national brick-and-mortar operators such as MGM and Caesars, have vocally campaigned for iGaming expansion, arguing it complements existing in-person gameplay. Smaller, regionally focused gaming companies such as The Cordish Companies and Churchill Downs have refuted that claim, arguing iGaming will cost existing jobs at brick-and-mortar properties.
Cordish, operator of Live! Casino Maryland and Live! Casino Virginia, has led charges against iGaming along both sides of the Potomac River. The company helped tank a promising online casino bill in Maryland last year and campaigned against a Virginia proposal that fell just short of passage in 2026.
Gambling addiction fears, along with gaming industry splits, have helped limit iGaming legalization to only eight states.
“It’s time for Maryland lawmakers to start thinking ahead and put in place the laws and rules that protect consumers who want these games,” Pappas said, “rather than simply pushing proposals that effectively kick the can down the road.”
